Small Business
Plan
Whatever the size
of your business, some plan is better than no plan at
all! It is unlikely that you would set out on a long
journey without mapping out the route of how you are
going to get there, where to stay, what to see, how
much it is going to cost etc.
And so it should be with any business.
Committing to paper
is the best discipline for getting your thoughts in
order, establishing your objectives and organising the
actions you will need to take to achieve your business
goals. Perhaps the best place to start is by drawing
up a SWOT analysis (Strengths, Weaknesses, Opportunities
and Threats) and adding to this as you go along. Done
honestly, this provides the basis of your planning.
The reasons
for doing a plan - even for a Small Business - are:
To get the owner’s
ideas and objectives clear in his or her own mind
To
act as a discussion document with professional advisors
Once in print it can be discussed with your bank manager,
accountant or a consultant. These advisors may well
be able to point out potential weaknesses and ways of
overcoming them or, from an outsider’s perspective,
contribute some lateral thinking.
To
use as an application to obtain finance
Obviously a viable financial plan needs to be demonstrated
for any finance or grants to be obtained.
To
minimise risk of failure
Perhaps the most important reason for a plan. A thorough
examination of the prospects (market research, sales
forecasts and costings) will indicate the viability
of the business, whether changes need to be made to
improve profitability or the plan abandoned because
of a high risk of failure.
What a Small
Business Plan should cover:
A
Summary
A brief outline (50 words or so) of the proposal. If
finance is sought, the amount requested should be stated
here, together with the amount of cash being put in
by the owner.
Brief
Background
How did the business start? What will the business do?
Nature of business. Trading activities. Starting dates
and legal status. Include SWOT analysis here.
Business
Objectives
The broad aims of the business and the owner, stated
under:
- Short-term objectives (first 12 months)
- Medium-term objectives (1 – 3 years)
- Long-term objectives (5 years time)
Marketing
Section
Market Research carried out and any test marketing done.
Marketing Strategy: What is the product or service to
be provided? What is special or different about it?
How will it be sold or distributed? Marketing Plan -
outlining how the products or services provided by the
business will be advertised and details of any planned
promotional activity
Personnel
Section
Who will run the business? What are their capabilities?
Details of owners and key personnel, their role, background,
experience and achievements in related fields. Details
of staff requirements.
Operations
Section
What items will be needed and how much will they cost?
Premises, plant, office equipment, fixtures, etc. Give
details of the premises planned - size, location, tenure,
cost, rent review and any necessary permission for change
of use. What operational processes are involved?
Finance
Section
Write a brief resume of the key aspects of the financial
projections and describe how the assumptions have been
arrived at. Specify finance needed and where it will
be obtained.
Risk
Assessment
No business is without risk. Highlight any anticipated
problems (for each section if necessary) and how it
is proposed to deal with these.
Appendices
- Attach financial projections. To include Profit &
Loss and Cash Flow forecasts on a monthly basis for
the first 12 months. Projections for Years 2 & 3
may also be prepared on a quarterly basis.
- Attach any detailed technical specifications, brochures,
drawings or photos of products.
- Attach curriculum vitae of owner and key personnel
- Attach any relevant information about the premises
– estate agents details, photos etc.
stepbystep business
plan software is suitable for most small UK businesses
- see demo
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